THE high interest rate environment has been punishing for locally-listed real estate investment trusts (S-Reits) amid rising finance costs, and valuations also coming under pressure
As at the latest financial results for the financial period ended Dec 2023, six of the 40 S-Reits and property trusts have partly or fully halted distributions to unitholders, amid worsening balance sheet metrics.
Analysts are divided over whether more players are at risk of a similar situation in the coming months.
Darren Chan, senior research analyst at Phillip Securities Research, said some Reits might consider halting dividends to ensure gearing remains within regulatory limits.
“This is especially if the Reits…
